Number
240866
Version
Original
Sponsor
THE CHAIR
Title
Authorizing the Sale and Issuance of General Obligation Promissory Notes, Series 2024 N5
Analysis
Resolution authorizes the sale and issuance of General Obligation Promissory Notes.
Body
Whereas, Common Council Resolution File No. 231256 adopted by the Common Council (the “Common Council”) of the City of Milwaukee, Wisconsin (the “City”) on January 17, 2024 authorized the issuance of general obligation promissory notes of the City in the aggregate principal amount of $1,077,486,096.99 (the “Authorizing Resolution”); and
Whereas, the Authorizing Resolution authorized the City’s Commissioners of the Public Debt (the “Commissioners”) to sell and issue the general obligations authorized thereunder on such dates and in such amounts as the Commissioners determine to be prudent and appropriate; and
Whereas, the City’s $48,785,000 General Obligation Promissory Notes, Series 2024 N1, dated April 2, 2024, have been issued under the authority granted by the Authorizing Resolution; and
Whereas, the Authorizing Resolution authorized the City’s Commissioners of the Public Debt (the “Commissioners”) to sell and issue the general obligations authorized thereunder on such dates and in such amounts as the Commissioners determine to be prudent and appropriate; and
Whereas, under the terms set forth in an official notice of sale given to potential bidders of municipal obligations (the “Official Notice of Sale”), and the information of the City given in the preliminary offering document dated September 25, 2024 (the “Preliminary Official Statement”), as authorized under File Number 240602 adopted by the Common Council on September 24, 2024, prepared and distributed with the Official Notice of Sale, the Commissioners desire to sell the General Obligation Promissory Notes, Series 2024 N5, of the City in the principal amount of $50,000,000 (the “Obligations”); and the Comptroller of the City (the “Comptroller”) has received on the date of this resolution one or more bids for the purchase of the Obligations.
Now, therefore, be it resolved, by the Commissioners as follows:
1. The actions of the Comptroller in distributing the Preliminary Official Statement and the Official Notice of the Sale, and in the publishing of a Summary Notice of Sale in THE DAILY REPORTER on September 27, 2024, for the sale of the Obligations are hereby ratified and approved.
2. The bid of J.P. Morgan Securities LLC (the “Purchaser”) for the Obligations in the principal amount of $50,000,000 at the purchase price of $ $55,280,125.55 is hereby accepted. The Obligations are hereby awarded to the Purchaser pursuant to the terms of the Official Notice of Sale.
3. The Obligations shall be dated as of their date of issuance, shall be issued in denominations of $5,000 or multiples thereof, shall mature on December 1 in the years and in the amounts, and bear interest payable semiannually on each June 1 and December 1, beginning on June 1, 2025, at the rates per annum as follows:
|
General Obligation Promissory Notes Series 2024 N5 |
|
|
|
|
|
|
|
Year |
|
Principal Amount |
|
Interest Rate |
|
2025 |
|
$ 3,740,000 |
|
5.00% |
|
2026 |
|
3,750,000 |
|
5.00 |
|
2027 |
|
3,755,000 |
|
5.00 |
|
2028 |
|
3,755,000 |
|
5.00 |
|
2029 |
|
3,760,000 |
|
5.00 |
|
2030 |
|
3,760,000 |
|
5.00 |
|
2031 |
|
3,760,000 |
|
5.00 |
|
2032 |
|
3,705,000 |
|
5.00 |
|
2033 |
|
3,705,000 |
|
5.00 |
|
2034 |
|
3,705,000 |
|
5.00 |
|
2035 |
|
2,515,000 |
|
5.00 |
|
2036 |
|
2,515,000 |
|
5.00 |
|
2037 |
|
2,520,000 |
|
5.00 |
|
2038 |
|
2,525,000 |
|
5.00 |
|
2039 |
|
2,530,000 |
|
5.00 |
4. The Obligations shall be subject to redemption prior to their maturity at the option of the City, in such principal amounts and from such maturities as the City shall determine and by lot within a single maturity, on December 1, 2034 and on any date thereafter, at a price of par plus accrued interest to the date fixed for their redemption.
5. A direct annual tax sufficient in an amount to pay, and for the express purpose of paying, the principal of, and interest on, the Obligations when due, has been levied by the Common Council under the Authorizing Resolution upon all taxable property in the City. The amounts and years for such levies are hereby established for the Obligations as follows:
|
General Obligation Promissory Notes Series 2024 N5 |
|
|
|
|
|
|
|
Levy Year |
|
Year Due |
|
Amount Due |
|
2024 |
|
2025 |
|
$ 6,503,888.89 |
|
2025 |
|
2026 |
|
6,063,000.00 |
|
2026 |
|
2027 |
|
5,880,500.00 |
|
2027 |
|
2028 |
|
5,692,750.00 |
|
2028 |
|
2029 |
|
5,510,000.00 |
|
2029 |
|
2030 |
|
5,322,000.00 |
|
2030 |
|
2031 |
|
5,134,000.00 |
|
2031 |
|
2032 |
|
4,891,000.00 |
|
2032 |
|
2033 |
|
4,705,750.00 |
|
2033 |
|
2034 |
|
4,520,500.00 |
|
2034 |
|
2035 |
|
3,145,250.00 |
|
2035 |
|
2036 |
|
3,019,500.00 |
|
2036 |
|
2037 |
|
2,898,750.00 |
|
2037 |
|
2038 |
|
2,777,750.00 |
|
2038 |
|
2039 |
|
2,656,500.00 |
In each of said levy years from 2024 to 2038 inclusive, the direct annual irrepealable tax which has been levied shall be extended upon the tax roll of the City and shall be collected by the officers of the City in the same manner and at the same time as taxes for general City purposes for such years are extended and collected, and when so collected, the proceeds of said taxes shall be used solely for paying the principal of, and interest on, the Obligations as long as any Obligation remains outstanding.
6. The Obligations shall be general obligations of the City, shall be issued in the forms approved by the Secretary of the Public Debt Commission (the “Secretary”), and shall be signed by those officers of the City whose signatures are required by law.
7. The Comptroller is hereby authorized to execute a Supplemental Certificate of the Master Continuing Disclosure Certificate for the Obligations.
Be it further resolved, that this resolution shall be entered upon the permanent record of the Commissioners and formally communicated by the Secretary to the Clerk of the City.
Drafter
Comptroller
Joshua Benson
PD-8689aW.rtf